On Tuesday, Procter & Gamble announced a 2% growth in net sales for the fourth quarter of 2025. But the conglomerate’s forecast remains modest as uncertain tariffs and consumer sentiment threaten sales growth in the U.S., its largest market. The owner of beauty and personal care brands like Olay and Gillette also shared full-year results for fiscal year 2025, with net sales remaining flat at $84.3 billion.
“We’re pleased with the performance P&G people delivered last fiscal year in the face of a very dynamic, difficult and volatile environment,” said outgoing CEO Jon Moeller on Tuesday’s earnings call. “Growing sales and profit are returning high levels of cash to share owners, despite heightened consumer anxiety with tariffs, inflation, interest rates, political and social divisiveness, and immigration and employment status uncertainty, all resulting in lower category growth and unpredictable geopolitical environment and against highly capable competitors.”
The earnings call came after the conglomerate named Shailesh Jejurikar as its next CEO on Monday. Jejurikar, who has served as COO since 2021, will succeed Jon Moeller in the role beginning in 2026.
Sales in P&G’s beauty segment, which includes the likes of SK-II, Mielle Organics and Pantene, grew 1% in Q4 2025. Sales remained flat in the skin-care and hair-care categories. The oral-care category, which includes Crest and Oral-B, grew in the low single digits. The category has seen both renewed interest and new competitors as Gen-Z consumers integrate oral care into their wellness routines.
Consumer sentiment has wavered throughout the second Trump administration, however, raising concerns that shoppers may trade down to lower-priced categories. P&G stated it will bank on growth through product innovation rather than promotional deals.
“Our job is to create our own tailwinds. Our job is to create category growth, and create an incentive for the consumer to return to the category and find value in our propositions every day,” said CFO Andre Schulten on Tuesday’s call. “Even though the consumer slows down for a period of time, they don’t stop doing their laundry, they don’t stop washing their hair, they don’t stop using diapers. … I firmly believe, and I think we all do, that the path of better innovation, better performance at adequate value, is an enormous opportunity to not only grow the category, but grow our share within the category.”
P&G forecasts a 1-5% growth in sales for fiscal year 2026. The conglomerate stated it plans to reduce non-manufacturing overhead personnel of up to 7,000 by the end of fiscal year 2027.
